SSGC facing gas shortfall of 250mmcfd

KARACHI: The Sui Southern Gas Company (SSGC) is currently faced with a gas shortfall of around 240 to 250mmcfd primarily because of the depletion in the indigenous gas supplies and constant increase in gas demand, a statement said.

In January 2021, SSGC had 1,010mmcfd average gas available for supply, compared with 940mmcfd in December 2021. A similar situation is likely to persist this January too. Unlike in the last winter, the increase in the gas demand is attributed to the demand for the domestic and fertiliser sectors.

The operation of the fertiliser sector is crucial for maintaining the fertiliser inventory to avert shortages, whereas Balochistan’s domestic sector’s demand needs to be met in view of harsh weather conditions.

The government is supplying 75mmcfd re-gasified liquefied natural gas (RLNG) to SSGC to bridge its demand and supply gap in addition to the curtailment measures.

As per the approved priority order listed down in the Gas Load Management Plan, the domestic sector stands at top priority in gas supply; followed by power and export-oriented industry at second priority and non-export industry at the third.

SSGC is required to meet the demand for top priority sectors, which necessitates rationalising and managing gas supply within other sectors, namely, the industry (non-export), compressed natural gas (CNG) and cement, in case of adequate supplies are not available for meeting the demand for high priority sectors.

In accordance with the approved load management plan, SSGC is required to curtail gas supply to non-export general industries and its captive power (175mmcfd) and CNG (20mmcfd) to meet the demand for domestic and the fertiliser sectors, as well as export industrial units.

However, SSGC could only manage to save 50mmcfd by curtailing CNG and power sectors. Of the 1,900 units of non-export industry, SSGC could only curtail gas supply to 180 units, owing to stay orders granted by the high court.

The situation is resulting in widespread low pressures across the SSGC’s supply system, which is affecting the rest of the industries, i.e., fertiliser and export.

The continuous operation of the non-export industry will have a serious impact on the overall supply pressures, which at times reach 60 to 70 psig as against the required pressures of 200 psig.

SSGC is holding meetings with the non-export industries for voluntary reduction in gas supply, as well as pursuing the matter in the court where stay orders have been granted.